Are you drowning in heaps of credit card debt and struggling hard to pay even the minimum payments every month? Well, you are not alone.
According to research, the average family in the United States has $7,000 in credit card debt and pays about $1,000 interest each year!
Throw in a late payment or two, or an over-limit charge, and that number skyrockets. Imagine what you could do with that $1,000 if it weren’t being spent on interest!
This is one of the major reasons why I decided to enroll in a free debt management program. I couldn’t bear with the exorbitant late payment fees and over-limit charges anymore; no matter how much hard-earned money I threw into making the minimum payments, the total credit card debt didn’t seem to decrease much.
It’s true that if you just pay the minimum payments, it will take forever to get you out of debt. Let’s say you have $5,000 debt on one credit card that is charging you 17.5% APR. If you pay only the minimum due of $25 per month on this card, you will never pay it off! The interest alone on this credit card is $73 per month!
By the time you have been paying on this $5,000 for 10 years, assuming you have not used the card during this entire period of time, you will owe $20,385! That’s over $15,000 in interest.
So, how are you going to get out of credit card debt before it’s too late? As for me, I enrolled in a free debt management program to help bring me back to financial track.
I have been in the debt repayment plan since October 2008.
{ 1 trackback }